The Income Tax (I-T) Department has detected undisclosed income of more than ₹500 crore in a raid that it conducted last week on two Tamil Nadu-based business groups engaged in civil contracts, real estate, advertising businesses, among others.
Searches were carried out at more than 40 premises located in Chennai, Coimbatore and Madurai. During the course of the searches, incriminating documentary and digital evidence was seized. The preliminary examination showed that both these groups had been suppressing their taxable income by claiming bogus purchases and expenses over the last few years.
In the case of one of the groups, it was found that the payments made for the bogus purchases were being received back in cash by the group. In addition, evidence was found indicating suppression of huge income on account of sharing of profits in joint ventures, which was not reflected in the regular books of account.
In the case of the second group, it was found that the group had created a number of bogus entities, which were being used for claiming bogus purchases and sub-contract expenses. Secret hideouts, maintained by the group for keeping documentary and electronic records were also discovered by the search team. Evidences showing introduction of bogus capital and loan liabilities in the books of account of some group concerns have also been unearthed.
Investigations are in progress.